Rs12,000-cr NTPC stake sale to open on 7 February
05 Feb 2013
The government will sell 9.5 per cent of the equity of state-run power utility National Thermal Power Corporation Ltd (NTPC) through a stock market auction, on 7 February, to raise around Rs12,000 crore ($2.25 billion).
"The empowered group of ministers (EGoM) has approved 9.5 per cent stake sale in NTPC. The stake sale will be made on February 7," disinvestment secretary Ravi Mathur said.
The government will offload a little over 783 million shares (or 9.5 per cent stake) in NTPC through an offer for sale (OFS) in the stock market, bringing down its holding in the country's largest power producer to 75 per cent from the current 84.50 per cent.
Mathur said the floor price for the offer would be fixed tomorrow.
The government had last month appointed merchant bankers, including Citigroup, SBI Capital Market and Morgan Stanley, as managers to the NTPC stake sale.
The divestment department has recently completed sale of 10 per cent stake in Oil India Ltd (OIL) through the auction route, raising a little over Rs3,141 crore.